Bank acquisition

Bank acquisition

Challenger is diversifying its product offering and extending its customer reach to drive medium-term growth
In December 2020, Challenger announced the acquisition of MyLifeMyFinance Limited (MyLife MyFinance), an Australian-based customer digital bank, for $35 million1.
 
The acquisition received formal approval from the Treasurer of the Commonwealth of Australia and was completed in July 2021.

MyLife MyFinance is an Australian-based authorised deposit-taking institution (ADI) and digital bank, offering a range of simple savings and loans products, including a term deposit offering. 

The acquisition is highly strategic and provides Challenger the opportunity to significantly expand its secure retirement income offering, including entering Australia’s term deposit market. 

Adding an ADI capability to sit alongside existing Life and Funds Management operations will broaden both Challenger’s product and distribution reach and help fulfil its purpose: to provide customers with financial security for a better retirement. 
MyLife MyFinance

The bank provides Challenger the opportunity to attract and engage with customers at an earlier age, as they approach and enter the retirement phase, increasing Challenger’s brand recognition amongst pre-retirees. 

Challenger will initially offer guaranteed retail term deposits, which are familiar banking products and represent a significant portion of both retiree and pre-retiree wealth.

The bank will provide Challenger access to a wider range of customers through multiple distribution channels, including new intermediated channels such as the broker term deposit market and accelerate Challenger’s direct to customer capability.

To ensure speed to market, term deposits will initially be marketed under the MyLife MyFinance brand and will transition to the Challenger brand during FY22.

MyLife MyFinance overview

  • $133m2 savings and term deposits 
  • $107m2 mortgage book - low Loan to Value Ratio (LVR) exposed to east coast residential
  • Average customer age 60 years
  • Contemporary technology with recent upgrade to Temenos Transact
1) Acquisition price subject to completion adjustments.
2) As at 30 June 2021.

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